h-town day: bob hale
DESCRIPTION
The H-Town Day presentation on the Houston Association of REALTORS by Bob Hale, President & CEO of the Houston Association of REALTORS.TRANSCRIPT
DISRUPTIVE INNOVATIONA process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves ‘up market’, eventually displacing established competitors.
An innovation that is disruptive allows a whole new population of consumers access to a product or service.
VS
VS
VS
$12 Billion $16 Million
$93 Billion $655 Million
$362 Billion ?
DISRUPTOR & DISRUPTEE
DISRUPTIVE INNOVATION&
CONSUMER DYNAMIC
Airbnb.com – Air mattresses and donutsListings worldwide from a room to a homeImplications for hotels and real estate?
Rent nightly from real people in 19,716 cities in 196 countries.
CURRENT DISRUPTIVE INNOVATIONS
• Mobile• Social• Ratings & Reviews• Videos
• Mobile – Disrupts traditional websites• Now more minutes are spent searching the web on apps
than browsers
Google Android – 150,000 apps – 2 Billion downloadsApple – 425,000 apps – 15 Billion downloads
• 1/2 of all searches will be via mobile devices within a year
MOBILE
Real Estate Apps - National Search
AppStore – Local App Search
Android Market – Local App Search
Apps for Consumers & MLS Subscribers
800 Million Users
3 Billion videos are viewed a day
200 Million Users
SOCIAL MEDIA
HAR Powers 800+ Agent’s
Facebook Business Pages
with their Listings
HAR Tweets Your Listings
87,000 Tweets
HAR Promotes Members Social Presence
HAR Promotes
Your Social Presence
Agent Videos by HAR TV140,000 Views - Agent/HAR Videos88,000 Views - Listings Videos
HAR Promotes Your Video Profile
& Listings on YouTube
70,000 Ratings
3,556 Agents have Surveyed Clients 4.93/5.00Total Surveys Sent to Clients 102,448 (49% Response)
DISRUPTIVE INNOVATIONAND HAR
HAR.COM WAS DISRUPTIVE IN 1997
Chicago Quarterly Market Ranking - 12 weeks ending 8/27/11
Column1 Websites Visits
1 Realtor.com 7.95%
2 Yahoo! Real Estate 7.69%
3 Zillow 5.89%
4 Trulia.com 5.35%
5 Homes.com 2.67%
6 Rent.com 2.62%
7 Redfin 2.18%
8 AOL Real Estate 2.00%
9 Midwest Real Estate Data LLC 1.78%
10 ZipRealty 1.72%
11 Apartment Guide 1.68%
12 Apartments.com 1.60%
13 RE/MAX Northern Illinois 1.56%
14 MSN Real Estate 1.48%
15 MyNewPlace 1.43%
Houston Quarterly Market Ranking 4 weeks ending 8/27/11
Column1 Websites Visits
1 HAR.com 26.74%
2 Yahoo! Real Estate 6.84%
3 Trulia.com 4.10%
4 Realtor.com 3.49%
5 Zillow 3.15%
6 Homes.com 2.69%
7 Apartment Guide 1.90%
8 Rent.com 1.87%
9 ZipRealty 1.64%
10 Apartments.com 1.54%
11 MSN Real Estate 1.50%
12 LoopNet 1.33%
13 ApartmentRatings.com 1.32%
14 AOL Real Estate 1.25%
15 MyNewPlace 1.01%
MLS Consumer Websites:It’s Not Just HAR.com Anymore
779,450 Agents Belongs to MLSs w/Public Websites
2010 – Broker/Agent Listings Viewed 145,881,434 Times
2010 – 438,782 Email Leads to Brokers/Agents
2010– Broker Phone# was Clicked 419,222 times
2010– Click-Thrus from HAR.com to Broker/Agent Websites
2,724,954 Times
2010– Click-Thrus from HAR.com to Broker/Agent Websites
2,724,954 Times$3.00 x 2,724,954 = $8.18 Million
$5.01
Key Characteristic of an Innovative Disruptor is Providing
Consumers What They Want
DISRUPTIVE INNOVATION
Not Listing Agent
Uber app-town cars, taxi Assn tried to stop it, 10 seconds for driver to accept, passenger rates driver &
driver rates passenger, $10 fee if passenger is a no show
Disruptive Innovation
• Top 1, 2 or 3 sites according to Hitwise and ComScore in almost every market in the US except Houston
• Ratings of agentso Over 70,000 agent reviews by consumers
• Source for housing articles in Wall Street Journal and USA Today
• Achieved $1 Billion market cap • 1/2 of agent leads may not be responded to• Zillow gives consumers what they want• Zillow is Innovative
Well, your average realtor (we interviewed several as part of our research for this report) doesn’t quite “hate” Zillow, but the realtor-Zillow relationship is complicated. Realtors generally admire Zillow’s web site and its ability to efficiently (and prettily) provide a wealth of real estate information. However, realtors loath Zillow’s price estimates, invariably describing them as wrong and bemoaning the friction they cause when prospective clients cite them, only to have the realtor "set them straight" with local knowledge Zillow never catches.
Internet Information provider that we call “Desired Monopolies.”
But the biggest thing realtors hate about Zillow is that ... they don’t own
it.
We can’t resist Zillow’s free, voyeuristic window into our neighbors’ homes, what they paid for them, and what they’re worth now. Zillow’s official business model calls for signing up more subscribing real estate agents, facilitating more mortgage originations, and selling more of its highly targeted advertising.
Overlaid graphically data on the classic Zillow aerial presentation :
Crime statistics Health statisticsImmunization rates at schoolsSewage treatment plants overlaid with arrows representing the predominant wind direction
If Facebook charts our social graph, then Zillow clearly has the lead in charting our environmental graph. And as a Desired Monopoly, Zillow can be the trusted middleman, aggregating nice-to-have information into a must-have whole.
By only pursuing “sustaining innovations” that perpetuate what has historically helped them succeed, companies unwittingly open the door to “disruptive innovations”.
DISRUPTIVE INNOVATION
Providing Consumers What They Want
Sold Prices & DatesListing History(Price Reductions)
Days on MarketNearby Homes for Sale
Nearby Homes SoldPrice Estimates & TrendsContact a Buyer’s Agent
Post Homes for SaleCompilation of Features from Above Websites